M&S Reports Record Holiday Sales

Budrigannews.com – Marks & Spencer, a British retailer (OTC:) reported record-breaking Christmas sales as a result of increased demand for party wear and its highest-ever share of the food market.

M&S outperformed the market in food for the second year in a row, according to Chief Executive Stuart Machin. During the four-week Christmas period, M&S maintained its lead in the clothing and home goods markets with its highest share in seven years.

He stated on Thursday, “This performance across both our businesses provides confidence in delivering our full-year results.”

Despite increasing economic pressure on consumers, the retailer’s high-end food offer typically attracts shoppers at Christmas, and 2022 was no exception.

It said it maintained its leading market share for the third year in a row thanks to improved availability of seasonal lines like turkeys.

But it said that its “Remarkable Value” offer also did well. It reported a 6.3% increase in like-for-like food sales, which was higher than anticipated.

Home and clothing sales increased by 8.6%.

The strong performance of the retailer adds to the evidence that people were determined to spend money at Christmas despite the fact that inflation was 10.7% and consumer confidence was at or near record lows.

OTC: Tesco, On Thursday, Britain’s largest retailer also reported Christmas sales that were higher than anticipated, with like-for-like sales rising 7.2% in the six weeks to January 7.

In the 13 weeks leading up to December 31, M&S International sales increased 12.5% at constant currency, with a strong performance in important franchise markets in the Middle East and owned markets like India.

Although it stated that “clear macro-economic headwinds ahead and underlying cost pressures” remained, the company was confident that its full-year results would meet its guidance.

In November, it warned of a “gathering storm” of higher costs and pressure on household budgets, and it has already predicted a decline in profit in 2022-23.